The Accounting Definition Of Mineral, Oil, And Gas Assets.

Abstract

#The accounting definition of mineral, oil, and gas assets has varied within the international accounting framework, national accounting frameworks, and international and national accounting standards that address the definition of assets in general. Additionally, the definitions of mineral, oil, and gas assets have diversified within specialized standards for extractive industries. This has resulted in the appearance of mineral assets or oil and gas assets in public financial statements under different denominations, rendering the financial data of entities incomparable and preventing financial data users from making informed decisions . The definition of assets is a crucial focal point in recognizing assets. Given the logical convergence in the classification of reserves and resources (such as proven reserves, probable reserves, and resources), it is of utmost importance to develop a clear and singular definition of mineral, oil, and gas assets that aligns with the definition of assets within the framework of the International Accounting Standards Board (IASB) and the definitions of reserves and resources. Based on this premise, this study discusses, through analysis and comparison, the definitions of assets according to some international and national accounting frameworks and standards. It also examines the feasibility of applying the definition of assets according to the current framework of the IASB to the definitions of mineral, oil, and gas assets.